St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-06-23
THE FIDELITY sWINDLE.


THE FIDELITY SWINDLE.
Rearrest of Three of the Officers
Enormous Deficit.
CINCINNATI, o., June 22.-Bank EX-
aminer Eugene Powell has been exceed
ingly busy all day in the attempt to get
a knowledge of the real condition OF the
Fidelity bank. The receiver has not yet
undertaken the responsibility of his
office. Mr.. Powell to-day made discov-
cries which justified him, under the adj
vice of District Attorney Burnett and
his assistant, Bruce, to cause the arrest
a second tine of MesSrS. Harper, Bald
win and Hopkins. This is new feature
of the case, as it consists of a charge of
conspiracy to defraud by issuing June II
three drafts of Sl00.000 each in favor of
Wilphin, Ecllert u Co. upon the Chemi-
cal National bank of New York, signed
by b. f. Hopkins, assistant cashier. The
charge is conspiracy to commit an offenSe
against the laws of the Uuited States by
unlawfully and wilfully misapplying the
funds and credits of banking inStitu-
ton, in pursuance of which purpose they
issued these drafts. Another affidavit
charges the same persons with con-
United States laws by issuing on May
Is last ''and causing to be transmitted
to the comptroller of the currency
false and fraudulent report of said FL
deity National bank at the close of
business May 13 is this, that the said
bank did not have in its possession, as
stated in said report, S630,0 000 in legal
tender notes and S226,310 in silver Ger
tificates; they knowing that these
amounts
WE'RE NOT THERE,
and making the statement in pursuant
of conspiracy to deceive certain Off
GERS of said national bank and the agent
appointed to examine the affairs of said
bank" The arrests were made upon
affidavits which were sworn to by Mr..
Powell late this afternoon. The prison
erS were taken together before United
States Commissioner Hogan, where
they waived examination, and were
bound over to appear at the October
meeting of court. Mr.. Hogan gave bond
in the sum of $4,000 and the other two
5000 each. Mr. Hopkins seemed much
detected. and said as to the last charge
he know nothing about the marking of
the report, as it did not come under his
share of the work. He said he could
easily show when the proper time came
~
was not responsible. Mr.. Baldwin was
apparently much detected. He is nat
urally reserved, and as he has had be-
fore serious affections, one the murder
of his son and another the suicide of a
brother. it has been suggested that there
was danger that this blow would unset
tie his mind so far as to cause him to
commit suicide. Mr.. Harper is man
of powerful mental and physical ca
pacity, and if he suffers he does not ex-
hibit it in his appearance. As the eX-
animation OF the Fidelity National bank
proceeds
THE CAVERNOUS DEFICIT
increases. 1t is now the common talk
on the streets that the liabilities of the
bank will reach the stupenduOus sum
of ST. .000. 900, while the assets dwindle in
proportion. 1t seems fOregOne cOnclll-
sion that depOSitors will get next to
nothing. This is tbs general talk. but
of course it is unofficial and cannot be
verified until the bank examiner COM
pleteS his work and makes his report 1t
is stated to-day that the memorandum
which is the substitute for collaterals
shows that Wiltshire used S1,10O,OOO of
the banks money. and that collaterals
for other loans were hypothecated in
New York and elsewhere. 1t is the be-
lief of some that Wiltshire acted as the
agent of Harper in conducting the
wheat deal, and was not really a bor-
rover.
A BIG CHICAGO CREDITOR.
CHICAGO, June 22.-The vice presi-
dent of the Exchange National bank of
Chicago makes public the statement
that the banks interest in the Fidelity
National bank of Cincinnati is limited
to one draft of 100000 drawn on the
Chemical National bank of New York,
which has been protested, and balance
of S19S, ,361 on collection accounts, against
which they hold sundry collaterals.
They claim to have assurances that the
draft and deposits of the Fidelity bank
will be paid in full.
EXAMINER POWELL'S ORDERS.
WASHINGTON, June 22.-Comptroller
Trenholm has has telegraphed general
instructions to Examiner Powell. who is
i'll charge of the Fidelity National Bank
of Cincinnati. He is directed to receive
all payments rendered him, and to push
collections of overdraftS and maturing
paper. but to pay out nothing that was
i'll the bank at the time of the failure.
Paper maturing and not paid must be
protested. and no checks or offsets are
to be allowed. In fact, nothing is to be
done that can await the appointment of
receiver. Remittances to the bank by
mail, and collections made by the exam
iner for account of parties not indebted
to the bank, and unmatured paper held
for collection and not credited to owners
may be returned or disposed of as own
erS direct.
A Runaway Match.